Credit cards have been around for a good amount of time now and it doesn’t look like they’ll be going away for a while. As with all types of borrowing, it’s really important that you spend a lot of time researching what each credit card company has to offer and one of the main things that you should keep an eye out for is whether the credit card company has a points or reward program. Although you should obviously consider the interest rate and so on, we still recommend that you choose a credit card that has a good reward program. So, if you’re not entirely sure why this is so important when you’re thinking about getting a credit card, here are the reasons why we think you should get a credit card that offers their customers some type of rewards:
- Get Something In Return – Most people that have credit cards use them on a daily basis and if you’re one of those types of people you might as well get something back for using your credit card so often. Credit card rewards are quite similar to loyalty cards in some ways since the more you use it the more that you’ll get back in return. The thing that you get back in return can be money, gifts such as free flights etc.
- Cheap To Use – When you’re getting a credit card the main thing that you need to think about is whether you can afford it. We recommend that you only use a credit card if you can pay it off before the high interest rates kicks in, and believe it or not you can actually save a lot of money by getting a credit card that offers points or rewards when you spend money on it. Let’s take a basic example, if the credit card company offers you £1 back every time that you spend £100 and you pay back the £100 before you have to pay a lot of interest it could save you a lot of money. As you can see, in the long run a credit card that offers something like this will be a lot cheaper than a “normal” credit card.
- Special Deals – Some credit cards give you special deals when you join them such as 10% off in certain shops and so on. One example is the American Express Nectar Card which gives you 5,000 free nectar points if you spend £500 within the first three months that you get the card. The nectar points that you’ve earned from using this credit card then can be spent in shops such as Argos, Sainsbury’s as well as plenty of other places.